Method and apparatus for estimating the spend capacity of consumers

• US 7,788,147 B2
• Filed: 10/29/2004
• Issued: 08/31/2010
• Est. Priority Date: 10/29/2004
• Status: Active Grant

• Current Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Yuan, Chao M., Haggerty, Kathleen B.
• Primary Examiner(s): Colbert; Ella
• Application Number:
  US10/978,298
• Publication Number:
  US 20060242039A1
• Time in Patent Office: 2,132 Days
• Field of Search: 705/1, 705/1.1, 705/10, 705/14, 705/14.13, 705/26, 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Time series consumer spending data, point-in-time balance information, internal customer financial data and consumer panel information provides input to a model for consumer spend behavior on plastic instruments or other financial accounts, from which approximations of spending ability may be reliably identified and utilized to promote additional consumer spending.

Claims

1. A method comprising:

receiving, by a computer-based system programmed to estimate a purchasing ability of a consumer, tradeline data for a plurality of accounts of an individual consumer for a period of time that is prior to a current period of time;

identifying, by the computer-based system, any balance transfers into at least one of the plurality of accounts, based on the tradeline data;

discounting, by the computer-based system, any spending identified for any of the plurality of accounts for any portion of the previous period of time in which a balance transfer to such account is identified; and

determining, by the computer-based system, a purchasing ability of the individual consumer based on the tradeline data, said discounting and a model of consumer spending patterns derived from individual and aggregate consumer data including tradeline data, internal customer data and consumer panel data.

2. The method of claim 1, said previous period of time comprising at least twelve months.

3. The method of claim 1, said portion of the previous period comprising one month.

4. The method of claim 1, said determining further comprising:

determining at least two categories of customers, the first category including customers that primarily pay down credit account balances and the second category including customers that primarily revolve credit account balances.

5. The method of claim 4, further comprising:

assigning one of the first and second categories to the individual customer based on the tradeline data.

6. The method of claim 5, further comprising:

changing the terms of a credit account of the individual based on said estimating and said assigning.

7. The method of claim 6, said changing further comprising:

increasing a credit limit of the credit account.

8. The method of claim 6, said changing further comprising:

providing a discount on a purchase to the individual consumer.

9. The method of claim 1, further comprising:

selecting the individual consumer from a set of customers that do not have a delinquent account status within the previous period of time.